-- Oil prices rose Monday following an apparent flare-up between the US and Iran ahead of the expiration of their ceasefire agreement this week.
West Texas Intermediate crude oil jumped 4.7% at $86.43 per barrel, while Brent rose 4.6% to $94.52.
Oil prices plunged on Friday as Iran declared that the Strait of Hormuz was open, a key US demand. Tehran, however, took back control of the waterway on Saturday. Both sides have accused each other of violating a two-week ceasefire that is due to expire Tuesday.
The US Navy on Sunday seized an Iranian-flagged vessel that tried to move past a naval blockade, President Donald Trump said in a Truth Social post.
"Oil prices are being whipsawed by developments in the Middle East once again, with what appears to be de-escalation quickly turning to re-escalation," ING Head of Commodities Strategy Warren Patterson said in a note on Monday.
The US is sending negotiators to Pakistan for a second round of peace talks, but Iran said it doesn't plan to participate in those negotiations.
Energy prices have surged as the Middle East conflict disrupted shipments through the Strait of Hormuz, the world's most important chokepoint for crude flows.
"After the US seized an Iranian-flagged vessel, there will be doubts over planned peace talks," Patterson said.